Reversing Entries Are Linked to ____________________ and _____________ That Were

question 118

Short Answer

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of a reporting period.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a claim on its profits.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.

Ownership

The legal right or title to possess and use property, whether tangible or intangible.

Affiliated Directors

Members of a company's board of directors who have a close relationship to or are employed by the company, potentially influencing their decisions.